Ideally, I planned to never sell off stocks at a loss. Well, I went against my plan yesterday and I think It was absolutely the right thing to do.
I had Frontier Communications stock in my portfolio from before I began the $150 journey, so it was old baggage.
I tried to buy a few more stocks here and there as it dropped to lower my average share price, but guess what.
I was down in total only about 5 bucks on the I think 12 shares that I had of it. I once bought a share for 6 bucks and bought a few more around the 2 and some change mark.
I just got sick of watching it go down and down, not even waiting for it to hit my minimum sell of 5% goal, but just to break even. I wanted this thing gone.
So what made me finally break my plans and sell it for the loss and say bye bye to 5 dollars?
The day before I bought 10 shares of Pier One after reading an article recommending them and very little other research. They were only like 70 cents or something like that, so I said lets put a few bucks in and see what it does.
IT SHOT UP!
Figuring that it should hopefully keep up a little incline if not stabilize, I decided to cut loose from Frontier and Put a majority of what was from that sale right into Pier One Imports.
The next morning ( today) I woke up to find my notifications letting me know two things.
Good News: Frontier went down another 5.4% today and eventually hit its year low of 2 dollars!
Other Good News: Pier One is still on the climb. Over night, the additional 20 shares that I purchased made back the loss I took on Frontier!
Moral of the story:
It is always ideal to stick to your rules, almost a commandment for success. But also, sometimes you just have to go with your gut. I go with my gut often and it usually works, sometimes it doesn’t.
In this instance though, it certainly worked out. I didn’t want to take a loss. 5 dollars might not sound like much, but I am out here trying to turn 150 into real money, and 5 dollars down is a lot!
I put my faith in the idea that Pier One probably won’t have another day that is up 20% right away, but compounding any bit of growth by 20 additional times would help. I do plan to keep an eye on it though as anything that can go up really fast can likely come down really fast as well.
How long I will hold onto the Pier One stock, I do not know. What I do know, it saved my ass and opened up a ton of new possibilities. Making my portfolio less of a stressor and back into an exciting fun journey.
If you are not on the journey with me yet to turn your $150 into real money, I hope you join soon.
As an incentive, use this link to download the Robinhood App for yourself and join the journey. You will get a free stock, I will get a free stock. To make it an even sweeter deal, anyone who uses my link will be featured on a podcast or mentioned in articles to come ( if they want, not an obligation)
Thank you for reading.
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